GE Home Lending: New homeowners spending £11k in first year

20 September 2007

New homeowners are spending an average of £11,000 in their first year to meet the costs of moving and setting up a new home, it has been claimed.

Research by GE Money Home Lending found that homebuyers spend approximately £3,000 on stamp duty, mortgage and solicitors fees, as well as around £5,000 on setting up their new home.

Additionally, paying "essential" bills can amount to £3,500 over the course of the first year, the firm noted.

Gerry Bell, head of mortgage marketing at the company, said: "While the price of the property may be the major financial anxiety for buyers, they must also consider other expenses associated with the house purchase."

However, with the company reporting that most buyers "over budget" for these costs, Mr Bell said it is "reassuring" that borrowers have a "realistic" view of their property purchase.

Halifax reported that property prices increased by 0.4 per cent in August, rising by a rate below 0.5 per cent for the third time in the last four months.